Use neat and well labelled figures to illustrate each of the following scenarios. Let country Z...

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Use neat and well labelled figures to illustrate each of the following scenarios. Let country Z be the other country in each case. (a) Country A is a small country that places an import tariff on wheat. Use a graph of Country A's market (Supply and Demand for Wheat in A) to show the change to consumer surplus in Country A (going from free trade to the import tariff). 2 (b) Country B is a large country that provides an export subsidy on Batteries. Use a graph of the world market to show the change to Country B's Total Surplus (going from free trade to the export subsidy). (c) Country C is a small country that sets a tariff rate quota on Cheese. The in-quota specific tariff is t, the over-quota specific tariff is to. The level of the quota is Q. With the tariff rate quota in place Country C imports Q units of Cheese and the price to consumers is greater than the sum of the world price and the in-quota tariff. Use a graph of Country C's market for Cheese to show the quota rents. (d) Country D is a large country that sets an export quota. Qe on exports of Drums. Country D allocates export licences to firms within country D. Use a graph of the market for Drums in country D to show the Consumer Surplus, the Producer Surplus, any Government Revenues or Costs, and Quota Rents arising from the export quota. (e) Country E is a large country that sets an export tariff, e on exports of eReaders. Use a graph showing demand and supply for eReaders in country E to show the distortionary losses for country E. (Be sure to label each distortionary loss). Use neat and well labelled figures to illustrate each of the following scenarios. Let country Z be the other country in each case. (a) Country A is a small country that places an import tariff on wheat. Use a graph of Country A's market (Supply and Demand for Wheat in A) to show the change to consumer surplus in Country A (going from free trade to the import tariff). 2 (b) Country B is a large country that provides an export subsidy on Batteries. Use a graph of the world market to show the change to Country B's Total Surplus (going from free trade to the export subsidy). (c) Country C is a small country that sets a tariff rate quota on Cheese. The in-quota specific tariff is t, the over-quota specific tariff is to. The level of the quota is Q. With the tariff rate quota in place Country C imports Q units of Cheese and the price to consumers is greater than the sum of the world price and the in-quota tariff. Use a graph of Country C's market for Cheese to show the quota rents. (d) Country D is a large country that sets an export quota. Qe on exports of Drums. Country D allocates export licences to firms within country D. Use a graph of the market for Drums in country D to show the Consumer Surplus, the Producer Surplus, any Government Revenues or Costs, and Quota Rents arising from the export quota. (e) Country E is a large country that sets an export tariff, e on exports of eReaders. Use a graph showing demand and supply for eReaders in country E to show the distortionary losses for country E. (Be sure to label each distortionary loss).

Answer rating: 100% (QA)

Unfortunately as a textbased AI model Im unable to directly create or display graphical figures However I can provide you with a verbal description of the changes in each scenario and explain the conc... View the full answer